Jakarta, INTI - The Indonesian Telematics Society (Mastel) estimates that Indonesia will require between US$30 billion and US$50 billion (approximately Rp540 trillion–Rp900 trillion) in 5G network investment by 2030 to expand fifth-generation mobile services to cover around 60%–70% of the country’s population.
Teguh Prasetya, Chairman of Mastel’s Artificial Intelligence (AI), Internet of Things (IoT), and Big Data Industry Division, stated that the projection is based on the assumption of large-scale network deployment, including extensive base transceiver station (BTS) densification, fiber-optic network expansion, and the development of supporting 5G ecosystems.
Meanwhile, Indonesia’s Ministry of Communication and Digital Affairs (Komdigi) targets 5G penetration to reach 32% by 2030. The target reflects significant growth potential, considering Indonesia’s current 5G adoption rate still lags behind Malaysia, where adoption has reached approximately 80%.
Infrastructure Expansion and Policy Support Become Key Challenges for 5G Rollout
According to Teguh, the scale of required investment could become a major challenge for telecommunications operators if it is not accompanied by supportive policies. Without fiscal incentive restructuring and more aggressive infrastructure-sharing schemes, the high capital expenditure requirements could become a structural barrier to accelerating 5G deployment in Indonesia.
“The investment challenge will directly influence the realization of 5G’s projected contribution to Indonesia’s GDP,” Teguh said, as quoted by Bisnis on Tuesday, June 16, 2026. Mastel’s estimates were compiled based on various investment projections and studies published by several institutions.
A study by GSMA estimates Indonesia’s 5G network investment requirement at US$18 billion (around Rp324 trillion) by 2030, assuming moderate infrastructure sharing and network densification. Meanwhile, a study by the Bandung Institute of Technology (ITB) projects a higher investment requirement of Rp473 trillion–Rp591 trillion between 2021 and 2030, covering spectrum costs, BTS deployment, backhaul networks, and core network upgrades.
GSMA also projects an additional investment requirement of US$16 billion (around Rp288 trillion) between 2024 and 2030 to support 5G implementation by telecommunications operators and industrial sectors.
For comparison, cumulative investment by operators in 2G, 3G, 4G, and 5G mobile infrastructure between 2015 and 2025 reached approximately US$29 billion (around Rp522 trillion).
Massive Infrastructure Needs Drive Demand for Alternative Financing Models
Mastel estimates that investment demand will rise substantially if Indonesia aims to achieve 5G coverage comparable to current 4G services, which reach around 97% of the population. While Indonesia currently has an estimated 350,000 4G BTS sites, the country may require approximately 1 million–1.05 million 5G BTS sites to achieve similar nationwide coverage.
As of early 2026, only around 12,000–15,000 5G BTS sites were estimated to be operational, leaving a requirement for an additional 985,000–1.035 million BTS sites. With an estimated average construction cost of US$150,000 (approximately Rp2.7 billion) per site, infrastructure investment alone could potentially reach US$147 billion–US$155 billion (around Rp2,646 trillion–Rp2,790 trillion).
Mastel estimates the realistic cost of building a new greenfield 5G site in Indonesia ranges between US$120,000 and US$180,000 (approximately Rp2.16 billion–Rp3.24 billion) per site. These costs include 5G radio access network (RAN) equipment using massive MIMO technology, fiber backhaul deployment, power and cooling systems, civil works, installation, and tower land leasing costs.
Teguh noted that such a significant funding requirement would be difficult to meet solely through operators’ internal cash flow, particularly as the industry faces stagnant average revenue per user (ARPU). Under a nationwide coverage scenario, the investment burden for each operator could reach US$10 billion–US$17 billion (approximately Rp180 trillion–Rp306 trillion) by 2030.
Therefore, Mastel recommends alternative financing mechanisms, including infrastructure sharing through Multi-Operator Core Network (MOCN) and Single Wholesale Network (SWN) models, expansion of the tower-as-a-service model, public-private partnerships (PPP), infrastructure sukuk issuance, and strategic foreign investment.
“Necessary fiscal incentives include tax credits for 5G capital expenditure, proportional reductions in spectrum usage fees based on macroeconomic impact, and access to affordable financing from state-owned banks for projects in Indonesia’s underdeveloped, frontier, and outermost regions,” Teguh concluded.
Conclusion
Indonesia’s 5G development is projected to require massive investment reaching up to US$50 billion by 2030, driven by large-scale infrastructure expansion and network densification. While the growth potential is significant, challenges such as high capital expenditure, stagnant operator revenue, and infrastructure gaps highlight the need for strong policy support and innovative financing schemes. Collaboration through infrastructure sharing, public-private partnerships, and fiscal incentives will be critical to accelerating Indonesia’s 5G rollout and ensuring equitable digital connectivity across the country.
Read more: SATRIA-1 Dominates Educational Services as BAKTI Connects Over 21,000 Internet Points